Zim News Blog -NEWS NETWORK

Source: Crunch meeting on basic goods prices | The Sunday Mail March 31, 2019

Kuda Bwititi
Chief Reporter

Taming prices of basic commodities will be the major talking point when Government meets industry tomorrow to discuss how implementation of the fuel rebate system, which was effected on March 22, will benefit consumers.

The rebates for excise duty on fuel effectively guarantee refunds for businesses in the productive sectors of the economy — manufacturing, agriculture, mining and transport — for the extra cost they incurred after the new prices became effective on January 13.

Industry believes the effective implementation of the rebate system will enable them to downwardly adjust prices.

Industry and Commerce Minister Mangaliso Ndlovu told The Sunday Mail that tomorrow’s meeting will also discuss challenges faced by manufacturers.

“When we put a rebate, the whole idea was to provide relief to the customer and the people, not to business. That relief is through affordable prices, and that was our expectation.

“We are going to have a meeting with industry on how this impacts on their cost structures and result in price reductions for ordinary people,” he said.

Although Government was mooting the idea of “People’s Shops”, he said, it remained conscious not to “intervene too much in the market”.

Accordingly, authorities continue to assess conditions in the market.

“We were planning on having People’s Shops that would be supported by bonded warehouses to mitigate the escalating prices.

“We want to see if in the next few weeks there is really need to still have them. There are still some pricing distortions and we are worried about the private sector profiteering out of all this, and we wanted to come up with a mitigatory measure, but we also didn’t want to upset the market.”

Price increases heightened last year owing to the mismatch between the pegged official exchange rate of 1:1 and parallel market rates.

Reserve Bank of Zimbabwe (RBZ), however, introduced the interbank foreign-exchange market in February this year.

Government, Minister Ndlovu said, will continue to monitor foreign-currency trading “and how it affects pricing of goods”.

Oil Expressers Association president Mr Busisa Moyo, who is also the chief executive officer of edible oil producers United Refiners, said if the rebate system is fully implemented, the cost of cooking oil should go down by 4 percent.

“Fuel represents 5 to 8 percent of costs of most business if you look at the logistics in and out. So a 3 to 4 percent decrease would be the impact of the rebate.

“However, it is up to Government to pay for the rebate in full and on time.”

The country’s biggest business lobby group, Confederation of Zimbabwe Industries (CZI), said tomorrow’s meeting should “thrash out key issues”.

“There will be many issues on the table. We are going to discuss the current state of industry and some of the issues that need attention include a review of the interbank foreign-exchange system. We will also discuss the rebate system and work out how it is going to be implemented,” said CZI president Sifelani Jabangwe.

Confederation of Zimbabwe Retailers (CZR) president Mr Denford Mutashu noted that retailers are likely to take a cue from industry if they review their prices.

“From the cost of basic commodities, rentals, transport, housing, school fees, there is need for a national review mechanism as incomes have been outpaced by price increases,” said Mr Mutashu.

He indicated that some predatory retailers had signalled an intention to further raise prices citing developments on the interbank market, where the RTGS dollar is now trading 3:1 to the US, despite the fact that obtaining prices already reflect the parallel market exchange rate.

 

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Source: Zimbabwe, Namibia reaffirm commitment | The Sunday News March 31, 2019

Minister of Information, Publicity and Broadcasting Services Cde Monica Mutsvangwa (centre) talks to Namibian Broadcasting Corporation staff during a tour of the broadcaster in Windhoek . With her is permanent secretary Mr Nick Mangwana (third from left)

Harare Bureau 

ZIMBABWE and Namibia have reaffirmed their commitment to revitalise the Memorandum of Understanding (MoU) on sharing information, which was signed in 2014.

This follows a visit to Windhoek by Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa last week.

In a joint statement with her Namibian counterpart — the Minister of Information, Communication and Technology, Stanley Simaata — Minister Mutsvangwa pledged to deepen the two countries’ bilateral ties in the information sector.

“The two ministers acknowledged the excellent relations between the two countries that date back to the days of the liberation struggles and reaffirm their commitment to deepen and strengthen the bilateral relations in the information sector,” reads the statement.

The two parties resolved to “review and revitalise the 2014 MOU in line with developments in technology and realities on the ground and create scope of the implementation of the agreements in the broadcasting and news agencies sectors”.

An undertaking to transform The Southern Times — a newspaper jointly produced by Zimbabwe and Namibia through NamZim — into a fully fledged Sadc regional publication was also made. This is in line with a 2017 resolution of the Sadc Council of Ministers of Information, Communication and Technology.

“The two delegations noted the good work NamZim had done through The Southern Times over the past 15 years to champion the idea of a regional newspaper that allows the Sadc region to tell its own narrative,” reads the statement.

“In the spirit of the co-operation, the two ministers enjoined their technical teams to deliver a draft revised MoU by end of April 2019 with a view of signing it during the Namibia-Zimbabwe Permanent Joint Commission scheduled for May/June 2019.”

Zimbabwe and Namibia enjoy cordial ties which stretch back to liberation wars in the two countries.

 

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Source: Chamisa has no challenger, says Komichi – The Standard March 31, 2019

The big interview BY OBEY MANAYITI

It is increasingly becoming clear that Nelson Chamisa will face a challenge from veteran politician Douglas Mwonzora in his bid to succeed the late Morgan Tsvangirai as leader of the country’s biggest opposition party, the MDC.

Chamisa, who seized control of the party a year ago following the death of Tsvangirai, has seen his stock rise after giving President Emmerson Mnangagwa a good run for his money in the July 31 elections.

However, this has not stopped some senior people in the party from plotting to dislodge him at the MDC congress slated for May.

One of Chamisa’s three deputies Morgen Komichi (MK) told our senior reporter Obey Manayiti (OM) in an exclusive interview that those planning to challenge the former student leader are wasting their time.

Komichi believes Chamisa’s performance in last year’s elections made him the clear choice to succeed Tsvangirai. Below are excerpts from the interview.

OM: What is the state of the party ahead of the May congress?

MK: The party is very stable and respective organs of the party are forming up structures, branches, wards and we are now going into the third phase of districts.

This weekend we will be forming districts and the congress is taking shape.

After that we will go to the provinces and after that people will then campaign in an orderly manner.

OM: There are reports of violence and the employment of dirty tricks to win over the structures. What is your reaction to those claims?

MK: The national organising committee is in charge of that and they are on top of the situation.

Problems will be there but the leadership, which is in charge of the whole operation, is trying to resolve those problems in certain areas where we have challenges.

You will expect these small problems where people meet but they are small. Largely the whole process is going on well.

OM: How many positions will be contested a the May congress and are vice-presidents going to be hand-picked by the winning presidential candidate?

MK: The final decision will be taken by the national council very soon, but the VPs will be contested. All the three positions will be contested.

OM: Have you made up your mind on which position you want to contest?

MK: I am very much content with where I am. I am going to influence and canvas people to vote me for the VP position.

OM: Do you support calls that one of the VPs must be a woman?

MK: This is a very good principle but at the end of the day the people have the final say.

OM: Do you have a preferred candidate for the president’s position?

MK: Yes. My preferred candidate is Nelson Chamisa. I am happy with his leadership style.

He has managed to galvanise people around him and is very popular within the party and outside.

He managed to garner more than 2,6 million votes in last year’s elections, which were, however, heavily rigged.

With this, what more would you want. In politics you need a leader who people will voluntarily follow to win the elections.

The big question is to anyone who wants to lead will he or she be able to win the votes.

A person must have a good reason on why he/she wants to contest. They must not be pushed by personal ambitions.

A person must be able to lead.What will he bring when they are elected. They must not be selfish.

Those who are interested must ask themselves if they are able to produce an outcome that will benefit the people, the party and anything new that will make the party grow.

I will advise some of the leaders not to focus on their personal interests but on national interests.

OM: So are you advising those leaders not to contest against Chamisa?

MK: I will not say they must not, but I will advise them to consider whether it is really necessary. At the end of the day, a person will do as he/she pleases but I don’t see any reason (in contesting Chamisa).

OM: Do you think there are any prospects of anyone winning against Chamisa given your position on his track record?
MK: The MDC people are going to nominate Nelson Chamisa with ease.

He is going to be nominated by all the 10 provinces in the country and our three external ones. No one is going to be nominated except president Chamisa.

OM: Why are you so sure about that?

MK: You must know the people. I am telling you no one is going to be nominated except Chamisa.

OM: There is growing factionalism and internal violence as the congress approaches. Do you think the party has what it takes to emerge stronger from these contestations?

MK: Nobody is going to walk away from the party. What is happening now is a situation to deal with competition and under the circumstances there will be high stakes and high pressure.

However, I want to assure you that after May 26 there will be harmony and unity in the party because competition is allowed.

MDC people know that after the congress they will come together and be one happy family again under one leader.

We also encourage unity, reconciliation and we will also go for integration so that we don’t lose on the objectives of the congress.

The congress is there to reconstruct the party, rebuild the party and discuss issues that will enhance the capabilities and capacity of the party.

We are going to be dealing with institutional reforms, organisational reforms so that we manage to put the party on a new level.

We want to modernise the party hence we are urging the members not to focus more on positions but propositions of liberating the people.

OM: Do you believe there are leaders within the party that are being sponsored by Zanu PF at this congress as has been alleged?

MK: I might not know them by name but I am quite sure that Zanu PF is doing that because one of the key tasks for Zanu PF is to divide our party at congress.

Do you know that Zanu PF puts aside a budget to make sure that they divide the MDC and if you look at the previous splits in the party you will realise that Zanu PF was involved.

They try to cause confusion and with the poverty currently prevailing in the country, the people are easily tempted.

Zanu PF is assisted by state agents and their role is to cause divisions and confusion within our party but we have been so strong that we managed to survive for almost 20 years.

Other small parties like the Zimbabwe Unity Movement (ZUM) were crushed by state agents and definitely there is that attempt to do that now but they will not succeed.
MDC has survived their shenanigans for a long time.

OM: Are these reports of Zanu PF interfering in the MDC not causing friction in the party?

MK: We just have to remain vigilant. MDC leadership is so far united and they are aware of the shenanigans.

I don’t think there will be anyone who will fall into that trap. This is from experience on how the system wants to destroy us, therefore, we will not give them any chance.

OM: What is your take on criticism that you are focussing too much internally and forgetting the real struggle? Is the MDC still committed to its founding values?

MK: Congress is a constitutional requirement and we cannot run away from the dictates of the constitution.

We have to fulfil that requirement because we have to reorganise, seek a new mandate and reinvigorate our party.

We need to bring in new ideas and we will actually come stronger from the congress and we will take on the issues that are affecting our country like economy, electoral reforms, legitimacy etc head-on.

OM: Are there any prospects that you will join the national dialogue being spearheaded by Mnangagwa?

MK: I think as a concept the national dialogue is a good idea, but the question is on how it is structured.

The current set up is just like that of Ian Douglas Smith where he was taking the lead, taking on his side people like (Abel) Muzorewa and (Chief) Chirau.

He didn’t survive because genuine parties who were fighting for the people, Zanu and Zapu didn’t join as they wanted an arbitrator who would be considered neutral.

This is not only about negotiating but the bigger part or the delicate area is the implementation of that agreement.

The facilitator should have the leverage to make sure that agreement is followed through.

People can dialogue and such but the question is will they be able to stand on top of the mountain and say their agreement will be implemented.

Their agreement will have the international stature, whether the agreement will benefit the people of Zimbabwe or it is just a game to fool the world.

We need serious dialogue and we need a person who will mediate in an honest manner, which we will all agree on because that person will be impartial.

I don’t know why the Zanu PF president is shy to meet the MDC president for a genuine negotiation.

He must be brave enough to meet the MDC president and chart the way forward on where the nation must go.

OM: On Friday two convenors were appointed and they are the chairpersons of the Gender Commission and that of National Peace and Reconciliation Commission. Does this motivate you to join the dialogue?

MK: Let’s see what they are going to bring, let’s see. The principle is very clear.

We need someone who is impartial and mutually acceptable. If that person meets that criteria, then the game will start.

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Source: Van Hoogstraten shakes CFI – The Standard March 31, 2019

Business tycoon Nicholas Van Hoogstraten through one of his investment vehicles, has moved to increase shareholding in Zimbabwe Stock Exchange (ZSE) suspended agro-industrial group CFI Holdings under controversial circumstances.

It emerged at the company’s recent annual general meeting (AGM) that close to 1,8 million shares traded in an off-market transaction.

During a heated AGM, Van Hoogstraten’s son Loius Hamilton is said to have purchased the shares from NicozDiamond, in which they were under Stalap Investments without seeking approval from Stalap.

Addington Chinake, who was representing Stalap asked the CFI board led by Itai Pasi to explain why there was a movement of shares whilst the company is still under suspension from trading in the ZSE.

This forced Pasi to reveal the controversial deal.

“Our director approached us with a declaration that they have purchased certain shares and had requisite proof showing that they are holding the shares in question,” she said.
“We then had no option but to conclude those changes on the shareholding section.”

Pasi added that the transaction was an off-market private treaty sale, which as a company they cannot stop and had no say in it.

The 1,8 million shares are believed to have exchanged hands last year without approval from Stalap.

Major shareholders in the agricultural concern include Stalap Investments, which covers shares held by Zimre Holdings, National Social Security Authority and Nicoz Diamond, Messina Investment, EFE Securities Nominees Lt , Willoughby’s Consolidated Plc and Hamilton and Hamilton Trustees Ltd.

However, sources close to the company said the move was part of the tycoon’s plan to take total control of the company, which he believes is worth close to US$200 million.

“Yes, the deal was done in a contentious manner. His aim (Van Hoogstraten) is to take full control of the business because he knows the real value of the business which according to him is close to $200 million real US dollar.

“If he was not aware of the CFI’s value he could have disposed of it long back.

“But the fact that he continues to hold onto this investment it shows that he sees its potential, “said a source who requested anonymity.

Chinake also asked the CFI board to give an update on its engagement with the ZSE on the suspension of the firm from the bourse.

Pasi told him the group was in talks with ZSE management, and they expected a resolution soon.

Meanwhile, in a trading update, acting CFI chief executive Shingi Chibanguza said the firm’s performance to date was in line with its budget although the entity was not spared the chaotic market reaction owing to the fiscal and monetary policy changes.

This resulted in panic induced consumer demand as customers were in a rush to convert monetary balances to commodities and goods.

“The changes disrupted our second edition of the Gold Rush Farm and Win promotion, which we had to suspend following unsustainable dynamics in the trading environment in the first quarter,” he said.

Chibanguza said in the first  five months of the year ending February 2019, the company refurbished its Farm & City Chinhoyi branch and invested RTGS$1.2 million in distribution trucks.

It also bought branch managers vehicles to assist in enhancing marketing and operational efficiencies.

In its farming operations, Glenara established 107 hectares of irrigated soya beans, 459 hectares of dry land soybeans in addition to table potato production.

In 2018, the group recapitalised farming operations at Glenara Estates through the purchase of US$1 million worth of new farming equipment and machinery.

Chibanguza said Glenara was now profitable on the back of a farm recapitalisation undertaken in the previous period.

“The group is now seized with finalising layout plans regularisation and development preliminaries to give impetus to the development stage of the project,” he said referred to the property division.

Chibanguza added that, given the reduced gearing, improved profitability and cash generation by the business, the entity was now on an exciting growth trajectory.

Expenses rose 26% compared to the prior period as the group undertook measures to cushion employees from the high cost of living in a market characterised by price distortions and inflationary pressures.

The group repaid RTGS$1,1 million worth of debts during the period, leaving a nominal RTGS$312 000 loans outstanding as at the end of February outside loans owing under joint venture arrangements.

“The group advanced a loan of RTGS$2,2 million to Agrifoods at the end of prior year and this earned the group a net finance income of RTGS$79 000 for the five months to end February 2019,” Chibanguza said.

CFI management is also optimistic that it will soon take Victoria Foods and AgriFoods out of judicial management.

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Source: Face to face with the horror and anguish in Cyclone Idai aftermath | The Standard (Local News)

Villagers in Ngangu, Chimanimani, queue to receive relief food flown in by a helicopter on Friday.

News in depth BY EVERSON MUSHAVA/ TAPIWA ZIVIRA

It was like a journey to the unknown as we meandered up and down the mountains.

We had left our vehicle several kilometres behind, as it became apparent that despite having high clearance and four-wheel drive capacity, it could not take us to our destination, Rusitu Valley, as the roads are impassable.

On the way, we met locals who told us heartrending takes of the devastation that Cyclone Idai had caused across the entire community, with Rusitu Valley being cited as the worst hit.

Our legs ached from the walk, but we had to plod on.

We hoped for the best for the people of that area, but the stories we had heard so far had us expecting the worst.

Our mission was to tell the full story because we felt it only been partially told, as the areas hit by the cyclone had remained inaccessible.

Scores of people were walking in the same direction as us, with some of them saying they were going to look for their relatives.

“I just want to see where my sister’s son and his family perished. That’s all,” one of them said.

All the walking was beginning to take a toll on our bodies and we thought of giving up, but just as we were about to do so, the Rusitu Valley came into sight.

We were relieved, but at the same time shocked and heartbroken.

What we saw was a bed of white rocks, sand, mud, rubble, destroyed buildings and debris scattered over a vast area that people told us was once a buzzing rural service centre.
Only a few buildings on the western side remained intact.

As we trudged further down into the valley, sweaty and anxious, we came face to face with the extent of the damage the cyclone had caused here.

As we were later told, the area, which is low-lying and has three rivers running one each side, had become a confluence point, as the riverbanks had burst, spilling water onto the flat area that was occupied by the shopping centre.

One of the few houses that remained standing in the aftermath of Cyclone Idai

The force of the rivers, Rusitu, Nyahode and Chipita, submerged an entire suburb, washing away people, houses and cars, depositing huge boulders whose source is still a mystery.
We put on our sweat-drenched shirts that we had tied around our waists for the better part of the journey.

The excitement to be among the first group of journalists to brave the terrain to get the story soon died down, and in its place, fear and emotions crept in.

The crowd was swirling at Kopa after news broke that President Emmerson Mnangagwa would be visiting the place.

On their faces were etched stories of anxiety and fear of what the future held.

“This place had close to 80 houses, all the people were washed away,” Dudzai Ndiyadzo, a headman in the area, said.

“The flood water washed away this whole residential area, destroying over 80 houses.

“Hundreds of people are still missing five days after the storm.

“They could be buried under the huge stones deposited by the floods.

“We hope rescue teams will come in and recover the bodies.”

We looked at the huge boulders in disbelief.

What he was saying did not make sense to us.

Sensing our shock, Ndiyadzo continued: “Most of the rocks and the debris were carried by Nyahode River.

“You see, what happened is that, the three rivers — Rusitu, Nyahode and Chipita — used to meet downstream and this suburb was in the middle.

“But on this day, some bridges up stream along Rusitu and Nyahode trapped some debris and blocked water, forcing it to change course.

“When the bridges gave in, the huge mass of water accumulating at the bridges drowned the whole suburb.

“There were about 80 houses, mainly for agriculture extension workers, Agriculture and Rural Development Authority employees and a few other private individuals who also had their own houses.

“There was also Gata Police Station and what is left of it is that board that used to be a signpost.

“There were many people in this suburb, including schoolchildren from various places lodging here attending school at Ndima High School.

“They all perished.”

Although five days had passed since the floods, Joice Mudzokora, still hoped this was a nightmare that she would wake out of.

“Very few people survived.

“We were marooned and some men tied a rope on a window at the police station, which people used to cross over.

“I survived with all my children, but most people did not make it.

“Many people were washed away. It was traumatising,” she said.

“After the water levels had subsided, some families went through the debris looking for their relatives.

“We found one kid in the debris.

“We saw hands in the sand and called the men to dig up and recovered the body of the child.”

With tears trickling down her cheeks, she added: “All these rocks were not here; not even the small ones.

“This was a nice place.”

Majiva Magweva (32) still could not explain how she survived the floods that claimed her two children, her niece and mother.

“It was around 9pm on Friday when water started flooding our house.

“I took my two-year-old child and went outside to look for a secure place,” she narrated.

“I walked a few steps and was knocked down. I tried hard to keep a tight grip on my child, but was hit by a rock on the chest and was forced to let go of the child.

“I was thrown onto the river bank and I realised I was marooned, as the water levels kept rising.

“I saw another woman.

“We rushed and helped each other up a tree, pushing and pulling each other.

“Another woman came and we climbed up a tree.

“We were all naked; we had been stripped naked by the floods.”

Magweva said help only came almost 18 hours later and during that time, they had remained perched up in the tree — praying.

“Around 3pm on Saturday, rescue came, but in a very difficult way.

“A group of men came with ropes, but these were too short.

“One of them volunteered to have a rope tied around his waist and he dived into the water, while the others held the rope to ensure he did not drown.

“He got to the tree and rescued us,” she said with tears streaming down her cheeks.

After they had been rescued, Magweva says that is when she realised the scale of the disaster.

Rescue teams are still battling to recover bodies, with some suspected to have been washed away into Mozambique.

“Many people died.

“Some cannot even be identified because they were traders who did not stay here.

“There was a banana market and the place is also filled with gold panners, with buyers coming in and out of this area.

“Most of them were trapped and died,” one villager, who only identified himself as Sithole, said.

“My neighbour, who worked at Agritex and lived alone while his wife stayed with the kids in Masvingo where she worked, had invited his family for the weekend.

“He had four children.

“They were all swept away except the wife.”

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